Hotfix is so fun and easy if you know how to do it.
I'll try to explain to you, but you have to forgive me if I make some mistakes in the language. I'm from Holland.
This is a youtube link with a simple explanation how to make a rhinestone/hotfix transfer: http://www.youtube.com/watch?v=yRCHGG2kBEI
and this video shows how to attach the transfer on your shirt. http://www.youtube.com/watch?v=xpiWgVE4tww
This is a link to a site (unfortunately only in dutch), where you can find lots of free patterns (in the menu it says: gratis motieven database). http://www.glittermotifs.nl/
Good Luck and have fun!